Bitcoin is struggling to surpass the $57,200 resistance. According to technical analysis by NewsBTC’s Aayush Jindal, the decline could accelerate if there is a close below the $56,000 support.
Bitcoin Faces Barriers
Bitcoin broke the $57,200 support level with a slow decline. However, the bulls are holding the $56,000 support level. The last bottom was formed near $55.848 and it is now consolidating its losses above the $56,000 level.
An immediate upside resistance is near the $56,600 level. That’s 23% of the drop from $59,090 to $55,848. Close to 6 Fib retracement level. The first major resistance is near the $57,000 level. There is also a key contracting triangle forming with support near $56.100 on the hourly chart of the BTC/USD pair. The next major resistance is near $57,500. This is close to the 50% Fib retracement level of the drop from the $59,090 high to $55,848 low.
A clear break above the $57.500 resistance zone could open the doors for more upsides. The next key resistance is near the $58,500 level, where the price could move higher. The bulls’ next stop is likely near the $60,000 level.
Will Bitcoin Drop?
According to Jindal, Bitcoin could increase losses if it fails to break through the $57,500 resistance zone. An immediate support on the downside is near the $56.100 level. The first major support is currently formed near the $56,000 level. A downside break below the $56,000 support could start a sharp decline. The bears’ next stop could be $53,500.
What Do Technical Indicators Say?
- Hourly MACD – The MACD is now gaining momentum in the bearish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently below the 50 level.
- Main Support Levels – $56,000 followed by $55,000
- Main Resistance Levels – $57,000, 58,500 and 58,500 USD